The Potomac Valley Athletic Council Indoor Track Championships at the University of Maryland's Reckord Armory served as a reunion yesterday for former area high school champions, a workout for Olympic hopefuls Alan Price and Rose Alwood, and a sendoff for Tony Diamond.

Price, a race walker; Alwood, a 300-meter sprinter; and Diamond, a Masters three-miler, won their events in the annual meet that drew 200 athletes from area high school, college and club teams.

Diamond finished the Masters three-mile in 17:39.0, with Dick Good, president of the sponsoring Potomac Valley Seniors Track Club, second in 20:22.0. Diamond, a Washington resident, will leave today to join the 52-runner contingent that will carry the Olympic torch from Yorktown, Va., to Lake Placid, N.Y.

Price, 33, won the two-mile race walk in 15:45.9. The national record holder for 100 miles and the 24-hour walk. Price heat Paul Levandowski, 19, of Rockville, who set the national high school mile walk record two years ago at Woodward. Levandowski was timed in 16:36 for the two-mile.

Sal Corrallo of Gathersburg, whom Price taught to race walk four years ago and who has since broken national Masters age-group records on his own, won the Masters two mile in 17:0. He arrived at the armory after completing a 20-kilometer (12.4-mile) race at Hains Point yesterday morning.

Alwood, a two-time Olympic sprinter from Jamaica took the women's 60-yard dash in 7.0. The 27-year-old, who is trying to make the Olympic team a third time, tied for second at 60.6 in the 440 with D.C. International teammate Nicky Norman. Debbie Robertson of D.C. International won the 440 in 59.1.

Larry Colbert of Lanham and the Potomac Valley Seniors won three Masters events, the 600 in 1:22.9, the 300 in 36.3 and the 60-yard dash in 7.0.

University of Maryland miler Wayne Morris, the 1978 high school state mile champion from Laurel, regained his lead over Paul Fisher of New York to win the open mile in 4:24.7. Jeannette Kelly, a Dunbar High School senior, won the women's mile in 5:22.0, and Mary Walsh, the former two-time Maryland state cross-country champion for Northwood, claimed the women's two-mile race in 10:54.1.